1. Field of Invention
The present invention relates to a system and method for managing margin accounts. More specifically, the present invention relates to a system and method for real time margin account management.
2. Discussion of Related Art
Certain types of investments may be margined or serve as the basis for margin account collateral finds. Margin investment may be subject to various regulations or rules. The federal government may impose different regulations on each individual margin account. For instance, for a short sale using margins, the federal government may require a certain minimum percentage of equity to be held in the associated account. A long sale or an option transaction using margins may invoke different requirements. In addition, an investment institution where margin accounts are held may also impose some in-house rules that may further restrict the activities to be performed on margin accounts.
Margin related investment often presents relatively higher risk. Opportunities to success often rely on correct estimation of where the market is heading and at what time frame. Slight differences in price associated with a security being bought or sold at a certain time may play a crucial role in determining gains. In addition, computations of margins are often complex and adaptive with respect to changing market, regulations, and rules. Investment decisions regarding margin investment are often made based on a snap shot situation of a dynamic market.